Consumer sentiment is improving in India, even though the COVID-19 pandemic has continued to worsen, stated Boston Consulting Group (BCG) and reported by Indiaretailing Bureau.
‘Cautious living’ is emerging as the new theme, where consumers are beginning to feel that it is time that they need to resume their activities albeit with a lot of caution, indicated the BCG report titled ‘COVID-19 Consumer Sentiment Research’.
The revival is stronger among lower-income segments and lower-tier cities, said the report, which has covered around 3,000 respondents across metros and Tier I/II/III & IV cities from July 20 to August 2, 2020. Around 44% of consumers think their income in the next six months will be lower than pre-COVID levels – significantly lower than 57% in the last round conducted over May 18-23.
“Similarly, the sentiment about spending is beginning to look better. The latest round had 42% consumers expecting their spending over the next six months to be lower, compared to 53% in the last round,” the report indicated.
There is also a pickup in routine activities with 53% consumers stating that they have been going out to work and 66% consumers saying that they have been visiting friends in the latest round as against 15% and 10%, respectively, in the last round. “Majority of the consumers, however, say that the frequency of most of these activities is still not at the pre-COVID levels.”
This is the fifth round of the survey, which assessed the overall changes in behaviour across a large set of categories and daily lifestyle. It also tracks overall consumer sentiment towards COVID-19.
Also read: Businesses are developing digital resilience
Commenting on how consumer sentiment is improving in India, Kanika Sanghi, lead, centre for customer insight for BCG India said, “We are beginning to see a change in the consumer sentiment. The overarching feeling in all the previous rounds of the survey had been more around fear, worries about the economy and their own incomes, whereas the latest round speaks much more about learning to live cautiously with the virus.”
The extent of revival is much faster in smaller cities. Across metrics, Tier II and below towns show faster pick-up. “For example, 52% of consumers in Metro and Tier I think their income will be lower, while only 41% in Tier-II and below think the same. Similarly, 36% of small-town consumers are going to local markets for essentials shopping as much as they used to pre-COVID, compared to 27% in metro and tier I.”
The spending sentiment has improved across many categories. While essentials, health, in-home entertainment continue to be winners, there is an uptick in sentiment across many semi-essentials like personal care, packaged food as well as discretionary items like apparel, cosmetics, auto, consumer electronics. Travel and out-of-home entertainment, on the other hand, continue to show little to no improvement.
Meanwhile, the strong acceleration in e-commerce continues. As per the survey, around 20% of new users have been added to the universe of online shoppers in the last three-four months. Many of the categories have seen an even faster acceleration – with fresh foods, staples seeing up to 40-50% new users.
Words by Farimah Moeini, Snapchat Head of Industry – Retail and Travel TheJuly 5, 2021 | By RetailME Bureau
Snapchat has been betting big on Augmented Reality’s (AR) retail future consideringJune 22, 2021 | By Jibran Chouguley
Union Coop, a consumer cooperative in the UAE, revealed that 78% of
Union Coop has opened its 23rd branch within the UAE in Jumeirah
Nando’s has revealed their revamped Sheikh Zayed Road outlet where newcomers and
UAE-based Al Maya Group announced that it will be boosting import of
UAE-based grocery retail chain, Grandiose has opened its first hypermarket in Abu
UAE-based Carrefour announced its theme and plans for Ramadan 2021. The brand
Locally owned supermarket Spinneys celebrates 60 years of doing business in the
UAE-based Carrefour will become the first retailer in the region to offer new levels
The Organic Farmers’ Market is back in Bay Avenue for its 12th
UAE-based Lulu Group recently inaugurated its first-ever all-female staff store in Jeddah,
Jones the Grocer, the gourmet grocer and cheese retailer launches the Jones
JD Sports Fashion has announced the appointment of Bert Hoyt as its
Online retail giant, Amazon has announced plans to open department stores in
adidas has announced that it will sell Reebok to Authentic Brands Group
The Ministry of Human Resources and Social Development in Saudi Arabia has
E-commerce giant Amazon’s founder Jeff Bezos has stepped down as CEO, handing
American clothing retailer, PVH has increased the number of active job advertisements
Extravagant, conceptual, great food and views are some of the ways that
As the UK begins to return to normality, Father’s Day shoppers are
Abu Dhabi’s state investment company ADQ is in talks to invest about $500 million
Netflix has announced the launch of its e-commerce platform where show merchandise
Global e-commerce giant Amazon has announced that it has struck a deal
French luxury conglomerate LVHM’s chairman, Bernard Arnault on Monday replaced Jeff Bezos